Comments on: Manitoba Tel’s New Wireless Dreams http://www.markevanstech.com/2007/05/26/manitoba-tels-new-wireless-dreams/ A Canadian Take on the Web Mon, 08 Sep 2008 00:12:19 +0000 http://wordpress.org/?v=2.6 By: s woodside http://www.markevanstech.com/2007/05/26/manitoba-tels-new-wireless-dreams/#comment-5514 s woodside Thu, 31 May 2007 04:35:48 +0000 http://markevanstech.com/2007/05/26/manitoba-tels-new-wireless-dreams/#comment-5514 insightful. it's obvious now much we are paying for losing the 4th operator, and how badly we need a new one. insightful.

it’s obvious now much we are paying for losing the 4th operator, and how badly we need a new one.

]]> By: b http://www.markevanstech.com/2007/05/26/manitoba-tels-new-wireless-dreams/#comment-5471 b Sat, 26 May 2007 20:42:53 +0000 http://markevanstech.com/2007/05/26/manitoba-tels-new-wireless-dreams/#comment-5471 You left out that Fraser used the Allstream acquisition as a way to avoid converting to an income trust. (Actually, he hinted that he might do so, which pushed the stock price up, and then used the inflated shares to fund the acquisition.) For MTS to acquire Microcell at the time (when it too was just out of near-bankruptcy and not a "high margin" business) wouldn't have been easy, but would have been a much better choice than Allstream. The proposed income trust conversion would also have been a better choice than Allstream (and would have left a stronger financial position from which to launch a national wireless service). Of course, both Bell and Telus could have used Microcell to expand their business and would have obtained a platform to enable the option of a GSM conversion. However, keep in mind that most financial analysts at the time opposed having Bell, Telus or MTS acquire Microcell. (They favoured removing the 4th player, but thought it was better to let someone else pay for it.) You left out that Fraser used the Allstream acquisition as a way to avoid converting to an income trust. (Actually, he hinted that he might do so, which pushed the stock price up, and then used the inflated shares to fund the acquisition.)

For MTS to acquire Microcell at the time (when it too was just out of near-bankruptcy and not a “high margin” business) wouldn’t have been easy, but would have been a much better choice than Allstream. The proposed income trust conversion would also have been a better choice than Allstream (and would have left a stronger financial position from which to launch a national wireless service).

Of course, both Bell and Telus could have used Microcell to expand their business and would have obtained a platform to enable the option of a GSM conversion.

However, keep in mind that most financial analysts at the time opposed having Bell, Telus or MTS acquire Microcell. (They favoured removing the 4th player, but thought it was better to let someone else pay for it.)

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